Creating a discount online store system

All our social life is somehow based on communication, the provision of services and goods. In this process, we give and receive discounts, do something with the reserve for the future, or take loans. In the process, we accumulate discounts for services and give them to people ourselves.
I am faced with the task of creating a discount system for an online store, the purpose of which is:
1. Increase customer loyalty to shopping in the store.
2. Increase the number of repeat orders.
3. Maintain a database of customers making purchases in the store more than once.
4. Calculate everything so that the discount system of the store increased the company's income and was not unprofitable.
5. Introduction to work .

I propose to consider each of the points in the key to solving the goal and choosing the most optimal option. I have some experience with these issues, but I have a great desire to fill these gaps.


1. Increase customer loyalty.
The growth in online sales increases competition, which allows customers to choose a store where they can make a purchase. There is, of course, the problem of dumping in the market, but this is a completely different topic regarding service, quality of services and goods, with which you can spend a lot of time and go beyond discussing store discounts. A sales consultant plays a huge role in sales, who, within the framework of his authority, can give a customer a discount and persuade him to make a purchase in your store. The presence of a discount system only formalizes what the consultant knows and will convey this information to potential buyers with all the nuances and conditions at any time of the day. This way you can interest people who need and are interested in using our services repeatedly.
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2. The increase in the number of repeat orders suggests that actions aimed at long-term presence in the market have begun to bear fruit.
There is the 20/80 principle, or the Pareto rule, formulated by the Italian economist Wilfredo Pareto at the end of the 19th century, still applicable in many areas of economics and management. It suggests that 20% of the effort gives 80% of the result.

At the moment, repeated visits to the store no more than 5-7%. Discounts and discounts are aimed at increasing the number of repeat orders and bringing it to at least 10%, and in the future - 15-20%.

In addition to re-treatment, I see another fat plus that you can give a discount card to a brother, neighbor, friend, colleague and push them to make a purchase from us.

3. Maintain a database of customers who own special conditions for making purchases.
This will provide more information and statistics on repeat orders, will allow you to calculate the real benefits of this system, to provide after-sales service and conduct promotions for such people on special conditions.

4. The most interesting in the calculations: to whom? for what? on what terms?
At the moment, I saw two main ways of maintaining the system:
1. Cumulative bonuses that can be used to make an order in the store.
What gives this method:
- bonuses can be used to make purchases only within this discount system. They can not be taken and spent on something else. This is a disadvantage for the client;
- If you accumulate a lot of bonuses in the hands of the client - this can lead to the fact that you have to give him the goods in the form of a “gift”. From the point of view of finance, nothing changes, however, peaks are possible, when many bonuses will be used and the amount of money in circulation may sharply decrease. Minus for the store;
- the client needs to be soared about bonuses, subtract, calculate. He may want to buy goods simply cheaper, and spend the rest on another service that the system does not provide (although there are systems where the service packages are very diverse)
- Accrual of bonuses by managers can cause certain difficulties and confuse when placing an order.

2. Discount on a purchase:
- The client pays less money and does not soar about hypothetical bonuses. He immediately sees that he has paid less and he has money left;
- Some suppliers require you to stick to the recommended prices. If the check shows the price less than the recommended price, the goods may not be accepted for service, or they may be accepted for a fee. Difficulties for the store. It is solved by introducing conditions for products of certain manufacturers. At the moment, out of 100 brands this is required only for 4-7 and their products are expensive and rarely sold (although it would be felt very good for such products and for large amounts). Exceptions can be specified in the rules for using the discount .; - simple accrual system - all customer orders are summed up,% discount is given depending on the amount of orders.

And I love tsiferki, neatly sign for!)))
1-3-18-42? Such a question will arise before calculating how many discounts can be given and for how much.
The basic unit to which the discount applies is an order. We considered the conventions on groups of goods, goods of different suppliers, etc., to be incorrect and difficult for the user to understand. There should be simple digits and 6 fonts under the order. From the amount on the site a person takes away his discount and gets the result. Since we want to work efficiently and honestly with respect to suppliers and competitors, we have decided to face exceptions for those cases where we cannot influence the conditions of purchase: exclusive supplier and requirements for the absence of dumping.

To analyze the activities, I decided to calculate the average cost of the order in the store. The result is the following:

Order amount, $	% of total orders
more than 400	2.5%
300-400	2.5%
200-300	five%
100-200	20.5%
40-200	56%
less than 40 USD	13.5%.

Then I built a pivot table about the fat on each order of the store. Navar I consider as the difference between the amount of the sale to the client and the amount of purchase from the supplier without the costs of delivery, office, advertising, etc.

Navar, $	% of total orders
more than 100	one%
80-100	one%
60-80	2%
40-60	five%
20-40	nineteen%
10-20	43%
Less or close to 10	29

Then he proceeded to analyze the costs, which include:

1. shop manager,
2. shop assistant,
3. courier,
4. office maintenance, telephones
5. advertising.

The bulk of orders is a profit of $ 10-40. Nawara Orders with a big profit are a priori more profitable. With less money - home delivery is often included, which offsets costs. After analyzing the orders, I concluded that it is possible to average the amount of the order up to $ 25.

The courier makes about 8 deliveries per day (takes into account departures by suppliers, arrival in the morning to the office, which totals 12-20 points per day, geographically scattered throughout the city).
I became interested in the cost of one averaged order for a store in the% ratio:
- 17% for delivery (courier, fuel, depreciation)
- 33% staff (calls, telephone calls to suppliers, availability, booking, ordering, printing checks, etc.)
- 15% on advertising and office expenses.

From the theoretical efficiency in a vacuum of 99.9999999%, we have 65% of the costs. Thus, one typical order leaves 35% of net profit to the company. If you think about any discounts to customers, then at the moment the maximum possible percentage of the discount is 5% .
An increase in this threshold is possible if the costs for one order decrease: one sales assistant can load more than one courier, increase the number of repeat customers, the store will be more well-known “with age”.

The only thing that remains is to calculate the conditions for obtaining a card and changing the conditions of interest for the better.
I believe that this can be adjusted for any online store, but I thought it would be beneficial to make the conditions for receiving such:
- made purchases in the store in the amount of not less than 400. e.
- buy a card for a gift or for permanent use. Additionally, if the card is a gift, fix on it the amount for which you can make a purchase. Money is given immediately to us. The discount does not apply to the gift amount. This is a kind of gift certificate and it is not decided whether it is necessary or in what form.

Rate grid:

Title	% discount	condition of receipt
After receiving the card	3%	Purchases in the amount of $ 400
Average	four%	Purchases in the amount of $ 1000
Maximum	five%	Purchases in the amount of $ 2500

5. Launching is possible in several ways:
To resort to the services of discounted clubs, choose a package of companies operating on existing cards. It is good that the accounting and accumulation mechanisms have been developed and debugged. Plus - the owner of the club deals with the issuance of cards, minus - these cards often need to be paid to the customer and not all possible wishes of your store can be taken into account.

Develop your own system of discounts. Difficulty - the cost of software development, support, time for debugging and implementation. In the future, it is compensated by the addition of additional services at its discretion, flexibility in setting conditions, independence from third-party services. It is also required to design and issue cards for discounts and decide at whose expense all this will be done. But for me, the last decision is beyond doubt - only at the expense of the store and only plastic cards with a unique number without reference to the name (hello to the neighbors!).

It seems to me that the presence of a discount system is not a silver bullet to increase sales. The lack of responsibility for the quality of goods, service, courtesy of courtesy-consultants, after-sales service and many other things will make it just an extra burden in a store that looks like a cripple and survives rather than grows and thrives.

Thank you for your attention, I will gladly complement and listen to criticism. Calculations and calculations carried out on an intuitive level, so there is the likelihood of errors or misconceptions on the issue of sales.
Only by the results of 3-6 months I can tell how it was done and how it works.
The shop is located in Kiev, but I do not publish the link and the subject for several reasons:

• habraeffekt)))
• the emergence of criticism about the icons, pictures, distracting from the discussion of the issue topic. I understand that usability, convenience and other important elements of product promotion, but this is already a question of advertising and attitude to the quality of services provided.
• This is a topic for the blog "I am promoting", which will probably be, but I have not yet found enough arguments in favor of writing it.